Smith & Nephew (NYSE:SNN) said yesterday that it acquired its exclusive distributor for Colombia, EuroCiencia Colombia, for an undisclosed amount.
EuroCiencia, which employs about 150 workers, has sold British health products giant Smith & Nephew’s products in Colombia since 2006, according to a press release.
"ECC provides us with an established, successful platform to accelerate growth in Colombia, 1 of the largest economies in Latin America. With increased resources and direct relationships with customers we are better able to fulfil their needs, through our pioneering technologies and enhanced service," CEO Olivier Bohuon said in prepared remarks. "We welcome our new employees to Smith & Nephew and look forward to working together to support healthcare professionals in improving the quality of life for their patients."
Smith & Nephew said the buyout is "in-line" with its plan to supplement organic growth with acquisitions. The company has made similar moves in Brazil, Turkey and India.
Smith & Nephew said it emerging markets business grew 17% last year, accounting for some 15% of total sales (an 8% increase since, 2010, according to the release.
News yesterday that Stryker (NYSE:SYK), a long-rumored suitor for its British rival, authorized a $2 billion stock buyback dampened enthusiasm on Wall Street for SNN shares, which closed down 7.5% yesterday at $33.76 apiece. The stock was trading at $34.66 per share in mid-morning activity today, up 1.6%.
But analysts believe that a deal between the orthopedics giants, although perhaps less likely, is still a possibility due to the strength of Stryker’s balance sheet.
